Savings Ratio

From Financial Literacy Wiki

Savings ratio is the ratio of your cash surplus to your income. This ratio measures the proportion of your income saved in a year. A positive ratio indicates that you are savings while negative ratio means you are overspending. But take note that, occasionally, you may encounter negative savings ratio because of purchase of big ticket items. If you take care of your personal finance well, you should experience a positive savings ratios in most year.